Manulife announces earnings for third quarter

Manulife Financial Corporation has announced earnings for 3Q 2017, with net income attributed to shareholders of $1,105 million. This compares to $1,117 million for the same period last year. The firm has fully diluted earnings per common share of $0.54 and return on common shareholders’ equity (ROE) of 10.8% – a reduction on the $0.55 and 11.1% posted for the third quarter of 2016.

Manulife generated core earnings of $1,085 million, fully diluted core earnings per common share of $0.53 and core return on common shareholders’ equity (core ROE) of 10.6%, compared with $996 million, $0.49, and 9.8%, respectively, for 3Q16.

Year-to-date 2017 net income attributed to shareholders was $3,710 million, fully-diluted earnings per common share were $1.81 and ROE was 12.3% compared with $2,866 million, $1.40 and 9.7%, respectively, for the same period of 2016. Year-to-date 2017 core earnings were $3,360 million, fully diluted core earnings per common share were $1.63 and core ROE was 11.1% compared with $2,734 million, $1.34 and 9.2%, respectively, for the same period of 2016.

“We delivered solid core earnings and net income in the third quarter, particularly given the provision for catastrophe claims,” said Manulife president and CEO Roy Gori. “Our growth drivers maintained their momentum, with double-digit core earnings and new business value growth in Asia and the 31st consecutive quarter of positive net flows in our global Wealth and Asset Management business.”

He added: “We are strongly positioned to transform Manulife into a digital, customer-centric market leader, and I could not be more excited to be taking on the role of CEO at this important time in the company’s history. I’m confident we have the right team and structure to deliver on our strategic priorities and create significant value for our customers, employees and shareholders.”

Steve Roder, chief financial officer, said, “Our 3Q17 results include a provision of $240 million for the estimated financial impact on our Property and Casualty Reinsurance business from the significant damage caused by hurricanes Harvey, Irma and Maria. This marks our first significant loss in this business since 2011.”

“We completed our annual review of actuarial methods and assumptions in the third quarter, resulting in a net neutral impact, in line with our previous disclosure,” added Roder.


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